Controversy exists over the Falklands' original discovery and subsequent colonisation by Europeans. At various times there have been French, British, Spanish, and Argentine settlements. Britain re-established its rule in 1833, though the islands continue to be claimed by Argentina. In 1982, following Argentina's invasion of the islands, the two-month-long undeclared Falklands War between both countries resulted in the surrender of all Argentine forces and the return of the islands to British administration.

The islands lie on the boundary of the Subarctic maritime climate and Temperate maritime climate zones with both major islands having mountain ranges reaching to 2,300 feet (700 m). The islands are home to large bird populations, although many no longer breed on the main islands because of the effects of introduced species. Major economic activities include fishing, tourism, sheep farming with an emphasis on high-quality wool exports, and oil exploration. Oil exploration, licensed by the Falkland Islands Government, remains controversial as a result of maritime disputes with Argentina.